As the Carolinas scramble to recover after Hurricane Florence, the Internal Revenue Service (IRS) has issued a reminder to taxpayers that criminals and scammers will try to take advantage of the generosity of taxpayers who want to help.
Sadly, this isn’t a new worry. As the storm season began, the IRS warned taxpayers to be alert for scams that will “undoubtedly pop up when and if a hurricane occurs.” Now, the IRS is reiterating its warning.
Fraudulent schemes involving fake charities are so pervasive that they were included on the list of the IRS “Dirty Dozen” scams for 2018. The Dirty Dozen is compiled annually by the IRS and lists a variety of common scams taxpayers may encounter at any time during the year. You can read more about the schemes here.
Your best bet is to donate through established, vetted channels like qualified charitable organizations. You can find more tips about charities offering assistance to Florence victims, and what to look for, here.
Fake charity-related scams usually start with unsolicited contact. That might be a telephone call, social media post or message, e-mail, or even in-person leading to phishing schemes, identity theft, or financial loss.
According to the IRS, some scammers impersonate charities or operate bogus charities to get money or private information from well-intentioned taxpayers. Others have bogus websites which use names similar to legitimate charities to trick people to send money or provide personal financial information.
And it doesn’t stop with fake charities. Some scammers will reach out directly to taxpayers, claiming to be working for or on behalf of the IRS to help storm victims file casualty loss claims and get tax refunds. Remember: The IRS will not initiate contact with you by email (or phone) to discuss your tax account.
If you have been affected by a natural disaster, and you have questions, help is available. You can call the IRS toll-free disaster assistance telephone number (866.562.5227) for more information about tax relief or disaster-related tax issues. You can also find details online on the disaster relief page on the IRS website.
